Nearly 6,000 U.S. homes sold for at least $100,000 above the asking price this year, more than double the number of homes that sold for that much above the asking price during the same period last year, real estate broker Redfin reported Tuesday.
An analysis by Redfin found that 5,897 homes nationwide sold for at least $100,000 above the asking price between Jan. 1 and Feb. 15, 2022. In the same period last year, 2,241 houses sold for at least $100,000 above the asking price, Redfin said.
“Homebuyers are paying up in an effort to beat other bidders competing for the few homes on the market,” Redfin said, reporting that January was the most competitive month.
Many buyers of homes that closed in the beginning of 2022 were rushing to take advantage of 3.1%, 30-year-fixed mortgage rates in December before they started to increase, Redfin said.
More than 700 homes sold for at least $100,000 above the asking price in Los Angeles, making it the country’s top market with the most homes selling for that much more than the list price.
The next six markets seeing the same kind of price activity included Oakland, Calif., San Jose, Calif., Seattle, Anaheim, Calif., San Francisco and San Diego.
Boston saw 158 homes selling for at least $100,000 above the asking price compared to New York City’s 109 homes. One-hundred and twenty-five homes in Denver sold for at least $100,000 above the asking price, Redfin reported.
In the first six weeks of 2021, Oakland, Calif., was the top market with homes selling for than $100,000 above the list price. Los Angeles came in second with 273 homes selling for the same amount above the asking price.
“On top of a lack of homes for sale, which makes everything a hot commodity, buyers are just plain eager,” Los Angeles-based Redfin agent Sylva Khayalian said.
